Holding Cryptocurrency, NFTs Or Blockchain Assets In RRSP

Introduction: Cryptocurrency in Your RRSP - A Tax Disaster Waiting to Happen?

Introduced in 1957, a registered retirement savings plan (or RRSP) allows individuals to defer tax on the income that they set aside for retirement. You can claim tax deductions for your RRSP contributions, and you pay no tax on income generated within the plan. You incur tax when withdrawing funds from your RRSP. But if you've planned things correctly, you won't need to withdraw until you reach retirement age-and fall into a lower tax bracket. In other words, an RRSP essentially allows you to grow your retirement savings on a tax-free basis by using money that otherwise would have gone to the government as taxes. You ultimately pay those taxes, but you do so after several decades-when you're subject to lower tax rates and after you've enjoyed the returns from the investments funded by pre-tax income.